E-Commerce Giant's Corporate Cousin Bets on Smartphones to Grab Business From Banks

BEIJING—When Liu Linlin needed cash for a down payment on a new apartment in Beijing, she didn't turn to a bank. She turned to Alibaba.

The 28-year-old magazine editor tapped a smartphone app called Alipay Wallet, which let her access 50,000 yuan ($8,130) from an online savings account. The app let her avoid applying for a transfer at one of China's traditional bank branches, which are notorious for poor service.